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tv   Boom Bust  RT  October 24, 2017 1:29am-2:01am EDT

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china is after assets in australia chinese investors sunk one billion dollars into australian agriculture such as the lucrative wine industry last year that's up from three hundred million a one billion plus dollar investment is planned for the port city of darwin for a luxury resort by the end of the year right in that port town and international property website two y dot com says that two thousand and sixteen was a landmark here for chinese real estate investment there in fact home prices are up nearly one hundred percent six since two thousand and eight in and around sydney eighty seven percent of foreign buyers were chinese now the australian government has taken action it is now doubled the rate of taxes on the purchase price for foreign buyers from forty eight percent. and britain is due to leave the european union in march of two thousand and nineteen but its biggest businesses want time amid concern of the security and jobs of security and
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investment as well in the u.k. they've asked the government there for a transition period of two years following the country's exit from the letter sent to bracks is secretary david davis says the economic relationship between britain and the e.u. should be as close as possible to the status quo during the transition after a european union summit last week in brussels e.u. leaders insisted that britain must make more concessions on a divorce payment before talks on trade and the transition can move forward they did however agreed to begin discussions among themselves about what the future relationship will look like. income keep up with spending in the united states incomes may have only just hit
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what they were nearly twenty years ago but spending is far surpassing that as we head into the holiday season and the january holiday hangover of credit card payments let's take a look at how we got to this place and what may be in store for us as we are i an interest rate hike in december and legging income growth please welcome but our hawkins she's the co-author of cocktail investing and the chief macro strategist at magic a research plan or great to have you on look let's talk about this credit card debt it's once again nearing all time highs you say it's scary to look at the level and the timeline because your very own to medical research points out the red line at the top that we see here just before the crash debt was reaching over that red line it's now hitting right around one trillion we're at that line now what do you say about the timing of this and that will not it's not in and of itself we just saw this rising credit card debt it doesn't necessarily have to be that concerning but that all depends on what's happening with income because if you have
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a credit card debt rising but incomes are rising a whole lot faster then you're fine now what we are seeing instead is that actually credit card delinquency rates have been rising for the past two years and are now the delinquency rates are where they were in the first half of two thousand and eight so that tells you that there's something wrong if we've got delinquency rates about where they were would we were in the midst of the recession there is a problem and in fact of the recent reporting we've gotten out of the banks has been pretty grim for the third quarter amex reported that their revenue was up seven percent but their provisions were at fifty three percent so revenue up seven provisions up fifty three percent and that's the largest increase that they. had since two thousand and ten and j.p. morgan being there alone last provisions on the credit cards up fourteen percent mostly all credit cards citigroup same kind of thing they have the loan loss position provisions up thirty six percent of that and that's all saying that they
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expect to have more and more people not be able to pay their credit cards out in the future so if we look at why that is happening like you said a lot of that is that is to do with income people are spending but their incomes haven't been going up in fact median household income hasn't really grown up until very recently it was below the peak of one nine hundred ninety nine and if we look at credit card balances they've been growing faster than income has and you can't have that go on indefinitely right if i keep borrowing more and more but my income is not rising as fast as my borrowing at some point i just can't even pay my bare minimum and this is partially due to the fact that retail sales have been making they've been growing a lot faster than income as well and that's kind of a problem we have in the culture because we hear all this talk about well we have to get consumer spending because consumer spending is seventy percent of g.d.p. but consumer spending if we say it's all about the spending that some sort of
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version of spend it and the economy will come it's not really happening because you need incomes to be there do you think american i want to say shoppers because retail numbers are what we're dealing with have been told that spending fuels the economy so go out and support business and you say this is a fallacy. exactly that it's exactly it is that we keep telling people that spending is good and and spending means a healthy economy but that's not actually true there's only two things that make an economy grow it's a growth in the workforce and it's growth of productivity it's not spending if you have more people it's kind of into it right you have more people working and if those people working are able to do more that's going to make an economy grow it isn't about spending the only way that spending can increase is either by you make more your income grows that or you borrow more and what we've been seeing is that
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people are borrowing more their incomes are going up and it's very difficult right now for us to get the economy really growing because again it's only about a function of the growth of the workforce and growth of productivity well we've got an aging population more and more people as a million people a year are turning over seventy so that's a shrinking population and we've got our workforce and we've got a very small younger demographics is particularly the next generation of millenniums are a little bit bigger but right now the workforce in the u.s. is growing at less than half a percent a year so less than half a percent of growth of the people who are able to work that's opposed to in the eighty's and ninety's you have like three to four percent growth year add on to that productivity is very low because we have unstable politics calls climate so companies are really invested in their own could project of capacity instead what they're doing is share buybacks we hear that all the time in the headlines as companies are making themselves more efficient what they're doing is buying back
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shares to boost share price artificially well that means that productivity is going around one percent so if you have a half a percent in your work force population growth and if you have one percent productivity that means you're g.d.p. you're lucky to get two percent. but what about the non retail spending that people use credit cards for we're talking about health care and student loans that debt has skyrocketed so is it really fair to tie in credit cards with retail spending though because so many especially in the younger generation are paying off debt with debt. exactly just to keep their head above water with these these student loan levels the likes of which we've never seen before just to make me people are having to spend on their credit cards and on top of that we've got health care costs that are just skyrocketing you know the newspapers are filling that every year you've got health care takes fifty percent more of our take home earnings today than it did in one thousand sixty you've got today where health care costs
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represent about seventeen percent of g.d.p. back in one thousand nine hundred five it was thirteen percent of g.d.p. and we're really getting them much out of it because other countries for example like it leave the u.k. and spain they spend only nine percent of g.d.p. on health care where we spend seventeen and we don't have a higher quality of health we don't have longer life expectancies but we have to pay on that not just means that there's less take home so we can't make ends meet what do you do you pull out the plastic it's all about that student debt and that health care debt it seems that is the talk of the day and of course income raising those incomes and those those you know helping people to pay down this debt by making jobs more worthwhile thank you so much for your input lenore hawkins co-author of cocktail investing and cheap macro strategist at medical research thank you so much. from the streets of texas to the island of puerto rico millions of hurricane victims are struggling to rebuild political arm twisting and
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increasing violence appear to be slowing down recovery efforts archies more important i reports. texans looking to rebuild in the aftermath of hurricane harvey may be denied disaster relief funds based on political beliefs according to reports texas passed a bill in july prohibiting the state from entering into contract with any business supporting the palestinian led boycott divestment and sanctions or b.d.s. campaign check out. the sample application for a harvey rebuilding contract from the city of dickinson it includes a section that requires the applicant to verify that they do not currently boycott israel and will not do so during the duration of the contract according to the a.c.l.u. imposing a political litmus tests on disaster relief funds for people devastated by hurricane harvey violates the first amendment of the constitution some organizers
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in houston also say the law is delaying recovery efforts as the lots of families remain displaced or in shelters while waiting for homes to be rebuilt meanwhile in puerto rico police officers are struggling to contain crime on an island where roughly eighty percent of people remain without electricity more than one month after hurricane maria pummeled the u.s. territory puerto rico's force of thirteen thousand officers are working longer ships responding to an increasing amount of calls for robberies shootings and high speed chases in an interview with the miami herald a police officer from the u.s. commonwealth claims quote it's easier to burglarize there's no alarms no phone systems it's dark the delinquents are taking advantage of the crisis that puerto rico is in unquote due to the island's economic crisis the puerto rico police
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department has reportedly lost four thousand officers in the past five years hundreds of u.s. army soldiers outside law enforcement officers and private security guards reportedly stepped in however at least thirty four murders a series of car break ins store robberies and fuel theft have been reported in the past few weeks alone hurricane maria caused an estimated eighty five billion dollars in damage across the island already mired in the levee. recession. r.t. time now for a quick break to stick around because when we return credit rating agency has its credit downgraded after one hundred forty five million american sensitive information. and my guess breaks down as the case against johnson and johnson in lawsuit after lawsuit is accused of not warning customers of the danger of base product as we go to break here are the numbers.
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you should. put themselves on the line to get accepted or rejected. so what you want to be for us. to want to be for this is what look for. people. interested in the water.
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there should. feel to be a share of the greatest job in the world it's as close to being a. good business model helps to run a prison we do. nobody nobody. no one would want to serve them anymore. do they want to. give a damn if you do. the louisiana incarceration rate is twice as high as the bridge what she is behind such success. seemed wrong. to
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shape out. and in. the trail. find themselves worlds apart of. common ground. and the uncertainty continues over the fate of one hundred forty five million
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american sensitive information after it was hacked from the system of consumer credit rating giant equifax now its own credit rating has been downgraded by r.b.c. capital equifax stock lost nearly one percent on monday after its rating was cut to sector perform after resting at outperform since august two thousand and fifteen r.b.c. says it expects the stock to be range bound for some time as the impact of the breach plays out the i.r.s. suspended a seven point two five million dollars contract with equifax to validate the identity and tax at the identity of tax payers communication with the agency on the telephone or through its website. despite strong third quarter results the parent company of toys r us is set free week holiday season has more incorporated sells nearly ten percent of its inventory through the brick and mortar toys r us stores it says profits rose three percent and revenue by seven percent in the third quarter however the burden of the recent surprise bankruptcy filing by
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toys r us in the u.s. and canada has exposed hasbro to unsecured claims for payments totaling around six sixty million dollars although consumer retail sales across the board is moving strongly toward online purchases toys r us is set for a massive in-store revamp using a virtual reality shopping experience to entice its tiniest customers. then johnson and johnson borne customers about the cancer causing properties of its products such as baby powder all those affected by the cancer causing agents have filed suits across the country and now one verdict worth four hundred seventeen million dollars has been thrown out in california please welcome one man who was well versed in arguing against johnson and johnson mike pepin tonio the host of
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america's lawyer right here on our t.v. mike what happened here with this huge verdict. well lindsey the judge in this case judge marin nelson and gave several ridiculous reason frankly have reviewed reviewed what happened you're absolutely ridiculous reasons why the case should be retried she claimed that there was misconduct on the jury after three jurors claim they were excluded from deliberating damage she said that the damages were excessive and that the claim there was no evidence this is really interesting claim that there was no evidence that johnson and johnson acted with malice you have to put this in terms of understanding where she comes from this is a judge who before she became a judge was appointed by schwarz naggers she worked for corporate america worked for a big bank she worked for all of the who's who of the u.s. chamber of commerce but listen lindsey here's what's so strange about this at this point five independent juries have listened to weeks of testimony five different jurors and reviewed the documents directly on file from johnson and johnson their
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documents they created and each one of those juries found the johnson and johnson failed to warn consumers about the link between talcum powder and the increased risk of ovarian cancer not only that they found the conduct was malicious and this judge all of a sudden says well i guess i suppose maybe juries are stupid maybe five different jurors juries totally different juries different parts of the country determine that yes they read juries reviewed everything and not only were they negligent they were malicious it is the worst kind of judging that's what juries are for a judge should not put them place themselves in a place of a jury who's looked at all this and said yeah this is bad well there have been very successful cases though i mean what is the difference here are there are there people who are going to take this and sort of set a precedent of judging it in this way based on a cherry i mean do you see it affecting these other cases. lindsay here's the
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problem since when did we get to the point in the united states. where a judge makes all the decisions rather than juries again five different juries looked at the facts here's what they found twenty two thousand american women are diagnosed with ovarian cancer every year the autopsy of these women that died by hughes and johnson and johnson actually they found the talc inside the ovarian tumor there wasn't any guesswork here is early one nine hundred seventy one johnson and johnson had way more than enough information to begin asking questions about how the talc might cause cancer in women they knew the answer to it nine hundred seventy one scientists discovered particles of talc embedded in ovarian cervical tumors and their very lives it's the earliest red flags for anybody but this judge says oh gee whiz they didn't have enough information in one thousand nine hundred eighty two another study clearly showed a woman's risk for contracting ovarian cancer doubled lindsay it doubled if they
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used talcum powder but this just this judge says oh gee whiz there wasn't enough information again you have to look at the source of this decision this is a this is a woman who's grown up with who's who of the u.s. chamber of commerce she comes from a defense firm called morrison foerster appointed by schwartz and i go why because she leans towards that kind of decision for corporate america half a dozen or more studies lindsay have looked at the relationship between talcum body powder in ovarian cancer and women all of the results from those studies were enough to put any reasonable corporation on notice that the product they were selling could cause injury and death by way of ovarian cancer but this judge says no i'm going to stand in the place of the jury juries just aren't smart enough to make a decision like that i'm going to do it and i'm going to take this verdict away a jury was so angry lindsay that they gave this woman four hundred seventeen million dollars now where they were that was just a was it just a jury of stupid people or does the judge stand in the in the position of second
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guessing the jury and taking this vertical way. the federal government is early one nine hundred ninety lindsay said that what you would expect here comes from the f.d.a. there was no consumer oversight they completely ignored the problem and according to johnson and johnson's own documents they were warned johnson and johnson was sworn as early as nine hundred ninety seven that you better look out for the fact that you've got a problem with cancerous tumors directly related to johnson and johnson powder but this judge says oh gee whiz that's an important we're going to divert it away you know it's terrifying also for women across the nation is that your mother and father use this on you as a baby this isn't a female product as adults it's called baby powder so you're using this on your child if that child continues that damage is just prolonged how long and protracted do you think this legal process is going to be for some of these victims johnson and johnson is very powerful well well well just in johnson's powerful but so are
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all the lawyers that are behind this they're not going to let this stand they're going to try the case somewhere else in another state with a judge who understands that the jury system in this country still matters in this not her place to make a decision for a jury after a jury said you know this is so bad that we're going toward four hundred seventeen million dollars thank you so much for joining me on this and it's not dory no it's not over thank you very much mike papantonio host of america's lawyer thank you lindsay. in canada t.d. bank is being accused of hiding the fact that it is outsourcing jobs and with that sharing the personal information of customers with people on the other side of the world artie's benches in toronto with the latest unbelievable alec some people are saying there's a lack of transparency in the way t. bank outsource the jobs and information what can you tell us about this. well let's start with this disclaimer is not only t.d. bank it seems like many banks are actually doing this but this all started when
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a t.d. employee a whistleblower spoke to the c.b.c. and basically brought this to the attention of everybody including us the fact of the matter is that this person worked on fraud cases for toronto dominion and what happened was that working on these fraud cases she noticed that a lot of the information was being outsourced that the investigators were actually happening around the globe in india now when i talk about information i'm talking about a lot of information these people know almost everything about you they know what your bank accounts are your credit cards they know your social insurance number they know what you owe your mortgage is absolutely everything so this type of information is very sensitive information now it's been moved to this consults sultan sees that after the giant company tata consultancy services and their workers who are contract employees get this information about you in india half way
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across the globe so while the fraud cases are actually being investigated in india this is where the tricky scenario comes in if you call to find out about your file you're going to get somebody picking up a phone just outside of toronto so you'll have the feeling that your case is actually being taken care of here in canada fact of the matter is you're never going to be talking to anybody in india so this is where this person is saying that there is a level. non-transparency involved now the fact of the matter is t.d.'s come back and said you know what read the fine print we have it right there it says that it spells out the cause of the bank's cardholder terms of green it on its website also well it said noting information may be shared with other parties worldwide but any expert will tell you people don't read the fine print so in this situation like most other this needs to be told there should be out bold for people. you know even you know the company individuals whose people don't read that stuff and you
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shouldn't expect them to so the fact of the matter is this is a situation that seems something is being buried yeah that fine print is really nice just like third party arbitration clauses in your banking contract and security seems to be at the core of this issue obviously how does outsourcing increase the threat of an authorized access to personal information if they're operating within the banks rules. you've got another point of entry that's the most important thing in cyber attackers the more points of entry they have the more levels of success they're going to have but banks are trying to do stuff we have a little list bill build up for you here and if you look at it everything good basically is around the internet in just basically the worldwide web so security data analytics mobile banking compliance online banking this is where banks are putting a lot of their money into that's fine and dandy but i think really the transparency issue is the big one here people trust their banks to do the right thing and when banks are making millions billions of dollars in this country outsourcing to save
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a few dollars is an issue with the customers and that's a big thing we're seeing technology coming down the road i know that you've heard of blog chain of technology we've all heard a big point yeah people will have a chance to take the power back at one point but as it sits right now people want transparency and it's not only in banking it's all about that kicking and screaming thank you so much for your information on this r t correspondent alex malley match thank you. it's an unsent letter from one nine hundred twelve and it's just fetched one hundred sixty six thousand dollars at auction but it's not just any old letter it was recovered from the body of a passenger on none other than the ill fated titanic but sunk on its maiden voyage in the north atlantic on a cold night back in april two thousand and twelve it was dated april thirteenth the day before the sinking it was written by first class passenger alexander osgar holder said an american salesman to his mother in it he writes that the boat is
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giants in size fitted up like a hotel and if all goes well we will arrive in new york wednesday am. well sadly he also describes spotting john jacob astor one of the world's richest people at that time both men died on that voyage the identity of this buyer is secret thanks for watching be sure to catch on direct t.v. here in the united states you can find us on the r. t. channel three two one and if you missed us on directv on youtube youtube dot com bust r t thanks for watching the next time. they. give a no. i'm not. going to do but if you
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are right. yeah use them this will support. something to go much but if the i want to be part of the. militia i'm going to go. into the name of the it is before you go to this notion of this not to be but i mean. look. good to live it up with the. manufacturer consent to public wealth. when the ruling class is
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protect themselves. if suddenly the one. time we can all middle of the room stick. around for the real news room. may not only be tasty but also dead to the ship the plane. it was suggested no proof and a fairly strong one there were two thousand brad some involved in the study it's a very extensive study done by a well respected scientist. do chemicals that down the advertising. really increase the risk of cancer and i chose a means of known to infuse damage in the last test as she had skepticism they do
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not believe that this is is true by independent scientists so did the meat industry and you for this i received some compensation for my time as was the others why is that the meat lobby definitely didn't like what we've been doing and if you want to learn more you'll get a definite on seeing stuff lot of you out here do not go back there. is a big business against health. as it started. almost . in safety. here's what people have been saying about rejected in the us a full on awesome the only show i go out of my way to launch you know what it is they're really packed a punch. yeah it's the john oliver of our three americas doing the same we are
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apparently better than two thousand and six and see people you've never heard of love or die. the world bank he. sent us an e-mail. in headlines this thursday morning top american senators say they didn't know the u.s. had troops operating in nice yeah and they don't go and questions over a deadly ambush earlier this month. but i didn't know there was a thousand troops in niger you heard senator graham there you didn't know we had a thousand troops in the air did you. know i didn't know. where a muslim couple in france are under investigation by the authorities after they attempt to register the new born child with a name. the ages of independence some published in the alphabet book with words associated with the region push to break away from space.

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